Grayscale Debuts First US Crypto Exchange-Traded Funds Featuring Ethereum and Solana Staking
Grayscale Investments recently made a groundbreaking announcement, launching the first crypto exchange-traded funds (ETFs) that enable staking. The company revealed that its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) are the pioneering U.S.-listed spot crypto ETPs to facilitate staking. Established in July the previous year, ETHE holds the distinction of being the second-largest spot Ethereum ETF in the United States, trailing only behind BlackRock’s iShares Ethereum Trust (ETHA).
Furthermore, Grayscale also confirmed that its Grayscale Solana Trust (GSOL) has begun staking operations. Subject to regulatory approval for GSOL’s uplisting as an exchange-traded product, it is anticipated to become one of the initial spot Solana ETPs with staking capabilities, as stated by Grayscale. By staking a portion of its Ethereum (ETH) and Solana (SOL) assets, Grayscale is able to provide exposure to both ETH and SOL while concurrently reaping network rewards. The company will engage in passive staking via institutional custodians and validator partners, thereby bolstering protocol security and ensuring the long-term health of the network.
Grayscale’s CEO, Peter Mintzberg, discussed the importance of this latest staking rollout for Ethereum and Solana funds, emphasizing the company’s commitment to staying at the forefront of the market. Additionally, Grayscale revealed its plans to extend staking to other products as the digital asset landscape continues to evolve. While REX-Osprey presently offers a SOL ETF with native staking under the ’40 Act, Grayscale’s Ethereum ETFs distinguish themselves as the first U.S. spot crypto ETFs under the more prevalent ’33 Act to incorporate staking. This move may set a new precedent for Solana once GSOL undergoes conversion.
Ethereum’s price hovered around $4,500 at the time of reporting, with a marginal 0.5% increase in the past 24 hours, according to CoinGecko data. Similarly, Solana’s price witnessed a 0.2% uptick in the last 24 hours, trading at approximately $233. Both blockchain platforms hold significant positions in the smart contracts domain, facilitating decentralized financial transactions and complex applications that are not feasible on the Bitcoin (BTC) network.
In conclusion, Grayscale’s introduction of the first U.S. crypto ETFs with Ethereum and Solana staking marks a significant development in the cryptocurrency market. As the digital asset landscape continues to expand and transform, Grayscale’s strategic focus on cutting-edge offerings underscores its commitment to innovation and market leadership.
